Chinese loan apps: ED attaches Rs 106 cr worth funds in money laundering case

Updated: Mar 29 2023 9:33PM

New Delhi, Mar 29 (PTI) Funds worth about Rs 106 crore kept in various payment gateway merchant IDs and bank accounts have been attached under the anti-money laundering law as part of an ongoing investigation against mobile phone-based loan apps "controlled" by Chinese nationals, the Enforcement Directorate (ED) said Wednesday.

The money laundering case was filed by the federal agency after it took cognisance of some Bengaluru (Karnataka) Police FIRs filed against numerous entities who "extorted and harassed" those people who took small amounts of loan through mobile apps (applications).

"These Chinese national-controlled entities have indulged in huge money laundering activities through the merchant IDs maintained with various payment gateways like Razorpay, Cashfree, Paytm, PayU, Easebuzz and bank accounts maintained with various banks, thereby generating proceeds of crime." "An amount of Rs 106 crore has been attached under the PMLA in merchant IDs and bank accounts," the ED said.